USA•Weak first quarter•Government spending on the decline•Considerable uncertainty surrounding fiscal policyEuro area•Solid economic growth in the first quarter of 2011•Growth differentials in the eurozone are narrowing slightly•ECB starts a gradual retreat from its ultra-loose interest rate policyGermany•Strong economic growth in the first quarter of 2011 (+1% q-o-q)•Less dynamic development as the year progresses•Marked losses in purchasing power due to higher oil prices